Feb'25 View on PVR Inox Ltd

PVR Limited (PVR) is India’s largest and most premium film exhibition Company. It pioneered the multiplex revolution in India by establishing the first multiplex cinema in 1997 at New Delhi and continue to lead the market with relentless focus on innovation and operational excellence to democratise big‑screen movie experience. It currently operates a cinema network 1754 screens across 111 cities and 356 cinemas with ~1.8 lakh seats. After making high above 2,200 the stock has been on a downhill and lying at 1,000 levels and now looks to roar back above 1,300 on back of following inputs • Footfalls grew ~2.2% yoy to 37.3 mn, as occupancy improved ~50 bps to 25.7%. • Management sounded optimistic on the content pipeline of FY2026E. • The company’s asset-light model is on track. • PVR INOX opened 77/10 gross/net screens in FYTD. • Q3 EBITDA of Rs2.4 bn fell short of our beginning-of-the-quarter estimate. • Hollywood should show some improvement in the CY25E content slate. • We expect earnings to grow by 214.3% in FY26E & grow by 100.5% in FY27E. • Stock is currently trading at valuation of 28.8x P/E FY27E EPS.